Looking Closer at the City of Marion’s Fiscal Caution Correction Plan. Reading Mode

This roadmap arrives immediately following the January 21, 2026, resignation of City Auditor Miranda Meginness, whose tenure ended as state accountability measures were enacted. These financial failures are described as the culmination of 15 years of “Silent Sabotage”—systemic issues with software and internal controls as documented by MarionWatch.com Investigates.

Marion Watch Investigates has utilized various types of expertise within our team and network to work with, and offer expert analysis and suggested solutions to the Collins administration since January of 2025.

Effectively disproving a long held narrative with documented evidence to support our assessments on a variety of topics. 

Working with the administration the evidence is clear that this is a deeply rooted issue dating back to at least 2009 and the installation of the New World software, and intensified greatly with issues involving the now resigned Marion City Auditor Miranda Meginness.

Rebuilding the Ledger: The Reconciliation Crisis

The Auditor of State found that Marion has not reconciled its accounting journals and ledgers with bank statements since December 31, 2019. Because basic evidence was missing, audits for 2021 were issued with qualified opinions for major funds, including the General, Police, Fire, and Storm Water funds. State auditors reported insufficient evidence to verify the city’s actual year‑end cash financial positions.

The audits also documented massive discrepancies between book and bank balances: by the end of 2020, city records showed a book balance $314,347 higher than the bank; by the end of 2021, the bank balance was $543,079 higher than the city’s internal books.

To address this, the administration will seek City Council approval to hire a specialized reconciliation firm with specific expertise, to be engaged by March 1, 2026. That firm’s work will include cleaning up records, establishing new Standard Operating Procedures (SOPs), and providing staff training to prevent recurrence.

Eliminating the $8.8 Million Deficit

As of October 31, 2025, the city identified 14 separate funds in deficit, totaling $8,877,996. The administration notes that these figures are provisional until reconciliations are complete and the books are verified.

The plan calls for a 20‑year repayment approach, with major department deficits repaid from the General Fund at approximately 5% per year over two decades. Key fund balances and proposed annual repayments are:

• Fire Fund (270): Deficit $2,558,295.08; annual repayment $127,914.75.
• Police Fund (260): Deficit $1,150,888.61; annual repayment $57,544.43.
• Parks Fund (211): Deficit $527,538.39; annual repayment $26,376.92.
• Dispatch Fund (265): Deficit $43,508.81; annual repayment $2,175.44.

Immediate fixes will clear small deficits using the General Fund:

• VAWA: $0.39
• Health: $6,652.69
• Adult Drug Court: $820
• ESID: $49.24

Budgetary adjustments include:

• Softball Field Improvement: deficit $43,073.89 to be reimbursed by grant.
• Muni Motor Vehicle License Tax: deficit $2,222.84 to be cleared by expense reductions in 2026.

Several enterprise and special funds are currently subsidized by the General Fund:

• Storm Sewer: approximately $2,727,116.06 (listed as ~ $2.7M).
• Marion Area Transit: approximately $734,997.25.
• Sanitation: approximately $407,877.36.
• Landfill Monitoring: approximately $154,975.14.

The administration emphasizes that final balances may change once reconciliations are complete.

Funding the Recovery: New Revenue Streams

To fund debt repayment and restore fiscal stability, the administration plans to implement rate increases and policy changes beginning March 1, 2026, projected to generate $3,484,579.61 annually. The revenue plan includes:

• Stormwater rate increase: estimated $2,252,379.61 per year.
• Ending tax credits for residents who work in other communities: estimated $600,000 per year.
• Recycling service changes: estimated $360,000 per year.
• Sanitation rate increases: estimated $250,000 per year.
• Bus transportation fare increases: estimated $20,000 per year.
• Park shelter rental increases: estimated $2,200 per year.

These measures are intended to cover ongoing subsidies and contribute to the multi‑year repayment plan.

Implementation, Oversight, and Prevention

The correction plan centers on three immediate priorities:

1. Engage a qualified reconciliation consultant and obtain Council approval for that engagement by March 1, 2026. The consultant will provide a schedule with performance goals and timelines, complete reconciliations, and recommend process and training changes.
2. Adopt new Standard Operating Procedures and staff training to ensure monthly bank‑to‑book reconciliations and to address software or internal control weaknesses.
3. Implement revenue and policy changes to generate the projected $3.48 million in annual revenue and begin the 20‑year repayment schedule for major deficits.

The plan acknowledges that accurate, reconciled books are a prerequisite for finalizing deficit totals and for validating the recovery strategy.

Context and Accountability

The December 18, 2025 correction plan is an administrative response to the Auditor of State’s findings. Independent reporting by MarionWatch.com and other local outlets has documented longer‑term concerns— we framed as “Silent Sabotage”—including documented software and internal control failures that predate the current administration. The plan does not itself adjudicate those investigative claims; instead, it focuses on immediate reconciliation, remediation, and revenue measures.

The resignation of City Auditor Miranda Meginness on January 21, 2026 followed the state’s accountability actions and is part of the broader accountability timeline surrounding these findings.

What to Watch Next

• Council action to approve and fund the reconciliation consultant engagement by March 1, 2026.
• Completion of reconciliations and publication of verified fund balances.
• Adoption of SOPs and training to ensure monthly reconciliations and stronger internal controls.
• Implementation of rate and policy changes and monitoring of actual revenue performance against the $3,484,579.61 projection.
• Independent technical review of software and IT controls, if pursued, to validate or refute investigative claims about disabled safeguards.